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Questo 2 Not complete Marked out of 10.00 P Flag question Disaggregate Traditional DuPont ROE Selected balance sheet and inco
b. Apply the DuPont disaggregation into return on assets (ROA) and financial leverage (FL). Rouand answers to two decimal pla
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Answer #1

(a) Average stockholders' equity= ($48663+46878)/2= $47770.5

ROE= Net income/Average stockholders' equity

= $9938*100/47770.5= 20.80%

(b) Average total assets= ($110903+90266)/2= $

ROA= Net income/Average total assets

= $9938*100/100584.5= 9.88%

Financial leverage= Average total assets/Average stockholders' equity

= $100584.5/47770.5= 2.11

(c) Profit margin= Net income/Sales

= $9938*100/38226= 26%

Assets turnover= Sales/Average total assets

= $38226/100584.5= 0.38

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